IBM (IBM)
NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-11-04
$254.32+1.71%
Close 2026-11-04 · 1-day change
NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-11-04
QuarterlyIQ Insights · IBM
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-11-04.
The screen ranks IBM against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated strong grew net income 65% of the time over the next year (vs 52% for the rest of the cohort, n=6380).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
"For the full year, we continue to expect constant currency revenue growth in the range of four-to-five percent, and we now expect free cash flow to increase by more than $1 billion year-over-year.”
Stated in 6 of 8 supplied quarters. Management reported: “"For the full year, we continue to expect constant currency revenue growth in the range of four-to-five percent, and we now expect free cash flow to increase by more than $1 billion year-over-year.”” “We now expect constant currency revenue growth in the range of four-to-five percent, and we continue to expect free cash flow to increase by about $1 billion year-over-year for the full year.”” Revenue was $17.103 billion in 2026-Q3.
“"For the full year, we continue to expect constant currency revenue growth in the range of four-to-five percent, and we now expect free cash flow to increase by more than $1 billion year-over-year.””
“We now expect constant currency revenue growth in the range of four-to-five percent, and we continue to expect free cash flow to increase by about $1 billion year-over-year for the full year.””
“"Given this strong start, we continue to expect more than 5 percent constant currency revenue growth and an increase of about $1 billion in year-over-year free cash flow in 2026.””
“Given these results and the momentum in our portfolio, we are raising expectations for revenue growth to more than 5% and free cash flow to about $14 billion for the year.”
“Given our first half performance, we continue to expect accelerating revenue growth to 5% plus and are raising our expectations for free cash flow to above $13.5 billion for the year.”
“With the caveat that the macro situation is fluid, based on what we know today, we are maintaining our full year guidance for accelerating revenue growth to 5% plus and about $13.5 billion of free ca…”
• Productivity Enables Investment and Value: IBM is accelerating productivity by scaling software development leveraging AI, increasing the effectiveness of its sales and marketing organization, and…
Stated in 5 of 8 supplied quarters. Management reported: “• Productivity Enables Investment and Value: IBM is accelerating productivity by scaling software development leveraging AI, increasing the effectiveness of its sales and marketing organization, and optimizing its supply chain.” “In 2023, we set out on a goal to achieve $2.0 billion of productivity savings and today we are well ahead of that, with an expectation of $4.5 billion of annual run rate savings exiting this year.”
IBM will invest more than $10 billion in quantum over the next five years, and remains on track to deliver the first large-scale fault-tolerant quantum computer by 2029.
Stated in 3 of 8 supplied quarters. Management reported: “IBM will invest more than $10 billion in quantum over the next five years, and remains on track to deliver the first large-scale fault-tolerant quantum computer by 2029.” “As outlined at our Investor Day, we are on a path to demonstrate the first error-corrected quantum computer by 2028 and continue to deliver key milestones in our quantum roadmap.”
Grow revenue by focusing on software, hybrid cloud, AI, infrastructure, and consulting, with a stated 2026 constant-currency growth outlook of four-to-five percent.
Continue managing cash generation, with management reiterating a full-year 2026 free-cash-flow increase of more than $1 billion year over year.
Over the trailing year it converted 3.64x of net income into operating cash flow. Historically, Information Technology names rated robust grew net income 62% of the time over the next year (vs 51% for the rest of the cohort, n=3136).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, real (inflation-adjusted) rates, Fed net liquidity (low R² over the window).
7 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Information Technology names rated neutral grew net income 56% of the time over the next year (vs 55% for the rest of the cohort, n=8114).
Not investment advice. As of 2026-11-04.
“• Productivity Enables Investment and Value: IBM is accelerating productivity by scaling software development leveraging AI, increasing the effectiveness of its sales and marketing organization, and…”
“In 2023, we set out on a goal to achieve $2.0 billion of productivity savings and today we are well ahead of that, with an expectation of $4.5 billion of annual run rate savings exiting this year.”
“We remain laser focused on driving efficiency and cost savings by leveraging technology and embedding AI in our workflows as well as optimizing our supply chain and service delivery.”
“As discussed at our Investor Day, we remain laser focused on accelerating IBM 1Q25 Earnings Prepared Remarks 8 our productivity initiatives.”
“Our operating pre-tax margin expanded by 120 basis points, ahead of our expectations and well above our model.”
“IBM will invest more than $10 billion in quantum over the next five years, and remains on track to deliver the first large-scale fault-tolerant quantum computer by 2029.”
“As outlined at our Investor Day, we are on a path to demonstrate the first error-corrected quantum computer by 2028 and continue to deliver key milestones in our quantum roadmap.”
“With more than 75 quantum systems deployed worldwide, our focus on emerging innovation is clear.”